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Guide for Raebareli Commercial Real Estate Investment

7 min read • Published 26 October 2022
Written by Anshul Gupta
Raebareli Commercial Real Estate Investment

Raebareli is a city situated in Uttar Pradesh. The capital of Uttar Pradesh, Lucknow, is approximately 80 km from Raebareli. Chaudhary Charan Singh International Airport and Kanpur Airport are two of the nearest airports to this city. 

It is in close proximity to NH-30 and is situated between Lucknow and Allahabad. Five other National Highways pass through Raebareli. This city is experiencing constant development, one of which is the Ganga Expressway, which is under construction.  

Let us understand how investing in commercial real estate in Raebareli might be profitable for you. 

Top Reasons to Invest in Raebareli Real Estate

Here are some of the reasons why you should consider investing in commercial property in Raebareli:

  • Connectivity

A four-lane highway stretching from Raebareli to Allahabad is attracting a number of commercial projects towards the city. Raebareli is also linked to Shaheed Path, a highway project connecting Lucknow to other highways. This area is very close to the nearest station, airport and hospital.

  • Industrial Area

Raebareli is a profitable location for factories and industries. It is home to some renowned names that have set their business in the vicinity. The Indian Telephone Industries Limited is a telephone equipment manufacturing unit in Raebareli. Besides that, the Modern Rail Coach Factory, Birla Corporation Limited and Rashtriya Ispat Nigam Limited are also located here.

Commercial Real Estate Investment Opportunity in Raebareli

Here are some of the localities in Raebareli suitable for commercial real estate investment: 

  • Ratapur

The locality has many facilities available in the vicinity. Bus stands, a railway station and markets are nearby. Ratapur has excellent road connectivity as well. The rate of commercial property in this area is around ₹1,239 to ₹4,167 per square foot.

  • Satya Nagar

It is a prime locality in Raebareli with all the amenities. There are a lot of shops present in this locality. It is an attractive place for consumers to buy goods they require. Multiplexes, shopping centres and international food chains like Pizza Hut, KFC, Domino’s and Café Coffee Day are present here. Rate of property here ranges between ₹3,000 to ₹4,645 per square foot.

Things to Consider Before Buying a Commercial Property in Raebareli

Here are some factors that you should keep in mind before opting for a commercial property in Raebareli:

  • RERA Authentication

Before investing in a property, make sure to check whether it adheres to the norms of RERA. RERA, or the Real Estate Regulatory Authority, is a statutory body that promotes transparency and accountability in India’s real estate sector. This body was formed after enactment of the RERA Act of 2016. 

To ensure the authenticity of a property and its builder in Raebareli, you can visit the official website of RERA Uttar Pradesh.

  • Market Research

When you plan to buy a commercial property in Raebareli, make sure to analyse market trends. It is important to assess the scope of future development of the locality. Opting for a property in a developing area will be more lucrative and offer high returns on investment in comparison to well-developed areas.

Also Read: Guide for Gandhinagar Commercial Real Estate Investment

Stamp Duty in Raebareli, Uttar Pradesh

Stamp duty calculation in Uttar Pradesh is payable as a percentage of the transactional value. Here are the rates of stamp duty applicable in Raebareli: 

Category Stamp Duty 
Male7%
Female6%
Joint buyers (Male + Female)6.5%
Joint buyers (Male + Male)7%
Joint buyers (Female + Female)6%

Registration Charges in Raebareli, Uttar Pradesh

Here is the applicable property registration charge in Raebareli: 

Category Registration Charges
Male1%
Female1%
Joint Buyers (Male + Female)1%
Joint Buyers (Female + Female)1%
Joint Buyers (Male + Male)1%

Also Read: Guide for Haridwar Commercial Real Estate Investment

Raebareli Commercial Real Estate Sector: What’s the Forecast?

The real estate map of Raebareli is undergoing a transitional phase at the moment. Raebareli road and Sultanpur Road are regarded as Lucknow’s future avenues. Expert investors have been following the growth in Raebareli and recommending great investment opportunities here. 

Development of Raebareli road is moving in an upward direction and showing all signs of positive growth for the coming years. According to research findings, 70% of UP will be urbanised by 2031. Raebareli road is among the areas where rapid growth will be witnessed. This shows how investing in commercial property in Raebareli might be profitable.

Commercial Real Estate vs Other Asset Classes

Here is the comparison between different types of asset classes:

Commercial Real Estate vs Residential Real Estate

Commercial real estate investment lets you earn better returns in comparison to residential real estate. Residential real estate investment is riskier as tenants tend to change within short intervals, which is not the case in commercial real estate as the lease is for longer.

Commercial Real Estate vs Stocks & Mutual Funds

Real estate has better consistency in comparison to stocks and mutual funds. However, returns are much higher in case of mutual funds & stock investments because the prices heavily depend on market sentiments. 

Commercial Real Estate vs Bonds

Real estate offers much higher returns in comparison to bonds. However, bonds have low credit risk. Moreover, bonds are highly liquid investment options that can be easily redeemed. 

If you wish to invest in bonds and earn fixed returns of 9-11%, register on our platform today and start investing in top-rated bonds available in the market. 

Commercial Real Estate vs Gold

Real estate offers a great chance to earn passive income every month, which is not possible in case of gold. Gold is more volatile and risky in comparison to real estate because the price can fluctuate as per global market sentiments. 

Here is the comparison between different asset classes on the basis of returns, liquidity, risk, volatility and ticket size:

ParametersCommercial Real EstateStocks & Mutual FundsGoldResidential Real EstateBonds
ReturnsHighHighModerateModerateModerate
LiquidityLow High High Low Moderate 
RiskLow High Low Low Moderate 
VolatilityLow High Low Low Low 
Ticket SizeHigh Varies LowHighVaries 

Steps to Invest in Commercial Real Estate in Raebareli

Here are the steps that you can follow if you wish to start investing in commercial real estate in Raebareli:

Step 1: Decide your budget and create a list of locations that fulfil your investment requirements.

Step 2: Plan a field visit to each of the locations to assess them based on infrastructure, connectivity, amenities, etc.

Step 3: After finalising a property, prepare the official documents like sale agreement, title deed, tax receipts, etc.

Step 4: Complete the payment process. Make sure to complete the registration and stamp duty formalities as well.

Step 5: Lastly, consider purchasing an insurance policy for your property to safeguard your finances in case your property incurs any damage in the future.

Final Word

The development curve of Raebareli is moving in an upward direction and promising positive growth in the coming years. Raebareli in Lucknow is an ideal place to invest if you are looking for long-term and rapid real estate appreciation.

Frequently Asked Questions

Do I need a broker to invest in commercial real estate?

Although it is not mandatory, having the help of a professional broker throughout the deal will help in saving a lot of money in the long run. You can avail brokerage services to make your property search easier.

Is it ok to invest in one type of commercial property?

Starting with one type of commercial property provides you with some advantages, like understanding the prevailing trends in the market and the ability to develop a speciality. Once you understand one type of property investment, you can gradually start investing in other types of commercial properties.

What is stamp duty?

Stamp duty is a type of tax imposed by the concerned state government on the sale of a property. The buyer of the property is legally obliged to pay the stamp duty.

What are the different types of commercial properties?

The various kinds of commercial properties that you can invest in are warehouses, storage facilities, retail stores, restaurants, hotels, shared workspaces, etc.

Was this helpful?

Anshul Gupta

Co-Founder
IIT Roorkee Alumnus and CFA with experience of structuring debt products worth more than 15000Cr for institutional and retail investors.

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